Correlation Between OMX Stockholm and Getinge AB
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By analyzing existing cross correlation between OMX Stockholm Mid and Getinge AB ser, you can compare the effects of market volatilities on OMX Stockholm and Getinge AB and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in OMX Stockholm with a short position of Getinge AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Getinge AB.
Diversification Opportunities for OMX Stockholm and Getinge AB
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Getinge is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Getinge AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getinge AB ser and OMX Stockholm is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on OMX Stockholm Mid are associated (or correlated) with Getinge AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getinge AB ser has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Getinge AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and Getinge AB
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.43 times more return on investment than Getinge AB. However, OMX Stockholm Mid is 2.32 times less risky than Getinge AB. It trades about 0.04 of its potential returns per unit of risk. Getinge AB ser is currently generating about -0.02 per unit of risk. If you would invest 140,238 in OMX Stockholm Mid on September 1, 2024 and sell it today you would earn a total of 23,249 from holding OMX Stockholm Mid or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.78% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Getinge AB ser
Performance |
| Timeline |
OMX Stockholm and Getinge AB Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Getinge AB ser
Pair trading matchups for Getinge AB
Pair Trading with OMX Stockholm and Getinge AB
The main advantage of trading using opposite OMX Stockholm and Getinge AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Getinge AB can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Getinge AB will offset losses from the drop in Getinge AB's long position.| OMX Stockholm vs. Beowulf Mining PLC | OMX Stockholm vs. Swedbank AB | OMX Stockholm vs. Arion banki hf | OMX Stockholm vs. TradeDoubler AB |
| Getinge AB vs. AddLife AB | Getinge AB vs. Biotage AB | Getinge AB vs. Synsam AB | Getinge AB vs. Bonesupport Holding AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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